High levels of working capital. Quantify the $ gap between potential performance vs actual based on existing stock policy codes
=> Reduce inventory by 20%
Inconsistent levels of service. Determine cause of service misalignment at an item level. Prioritised remedial action on most important items for quick turnaround
=> Improve service level performance by 20+%
Poor operational efficiency. Assess the quality of execution. How different is reality vs existing parameters: re-order quantities, POs, lead times, MOQ and safety stock etc. Re-evaluate your supply chain footprint and model impact from consolidation
=> Identify biggest $ inefficiencies at the item level
Stay ahead of supply chain challenges!
Boost efficiency with these 9 practical tips!
9 PRACTICAL TIPS TO SUPPORT OPERATIONS
Dispensing Equipment Manufacturer. Optimizer identified misalignment between ERP stocking parameters and actual day-to-day execution, leading to a process efficiency improvement
=> portfolio rebalancing 40% overstock & 40% understock to optimised by following stock parameters
Ingredients Producer. Optimization analysis highlighted significant scope for rebalancing portfolio, significant overstocking in raw material and finished goods
=> 20% reduction in stock from optimization
Major Engineering Business. Modelling footprint consolidation from 9 sites to one, defining runner, repeater, stranger profiles for each SKU at 98%, 95%, 80% service levels
=> delivering significant savings and service improvement
See how this works in action.
Read our case study on an industrial manufacturer.
INVENTORY CASE STUDY MANUFACTURER
See how this works in action.
Read our case study on a manufacturer.
OPERATIONS CASE STUDY MANUFACTURER
Our optimizer ingests multiple ERP data tables, leveraging traditional and new techniques to assess the current health of the supply chain from supplier to customer. We identify the most valuable products & customers and look at the inventory health, OTD & Service Levels in relation to Demand, COGS, Revenue and Gross Margin. With the knowledge of the portfolio analysis, we develop strategies to solve the identified issues and simulate these as part of the Optimization process.
Savings & Performance. Inventory reductions, cash savings, service level improvements, reduction of end-of-year write-downs, stock variable inefficiencies, actual vs potential performance.
Portfolio & Process. Determine how far existing inventory policies differ from optimized; Define the optimal balance between higher service levels and inventory investment; Identify which items are over/under-stocked and evaluate what process gaps are responsible e.g. staffing gaps, processes, and workflow challenges.
Strategy & Tactics. Evaluate how best to restructure the supply chain footprint and reduce costs but improve service levels; Model supply chain outcomes to determine optimal strategy and associated risk sensitivities; Understand the impact from variability in lead times, MOQs, and demand volatility and any potential adjustments at part level.
Is your business operating as effectively as it could be?
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